Anglo American 2025 results: EBITDA up, net debt down, Teck merger on track
Anglo American has posted a steady set of 2025 numbers from its continuing operations, while pushing hard on portfolio reshaping and the headline-grabbing merger with Teck to create “Anglo Teck”. Underlying EBITDA rose 2% to $6.4 billion, cash generation was strong, and net debt fell by $2.1 billion to $8.6 billion. The fly in the ointment was diamonds: a sizeable De Beers impairment pushed the Group to a statutory loss.
Here’s what matters for investors – in plain English – and what to watch next.
Key numbers at a glance
| Metric (continuing operations unless stated) | 2025 | 2024 |
|---|---|---|
| Revenue | $18,546 million | $17,745 million |
| Underlying EBITDA | $6,417 million | $6,322 million |
| EBITDA margin | 33% | 34% |
| Cash conversion | 107% | 98% |
| Net debt (including derivatives) | $8.6 billion | $10.6 billion |
| Group underlying earnings (total) | $610 million | $1,937 million |
| Statutory loss attributable to shareholders (total) | $(3,741) million | $(3,068) million |
| Total dividend per share | $0.23 | $0.64 |
Copper and Premium Iron Ore did the heavy lifting
The quality of the core portfolio showed through. Copper delivered $3,983 million of underlying EBITDA at a 49% margin, and Premium Iron Ore delivered $2,873 million at a 43% margin. That combination – copper growth plus high-quality iron ore – is exactly what Anglo is building around.
- Copper: Production fell 10% to 695 kt as Chile had a tougher year at Collahuasi (lower grades and recoveries). But pricing helped – the copper market price rose 9% and Anglo’s weighted average realised copper price rose 14%.
- Quellaveco (Peru) shone: EBITDA up 32% to $2,325 million with very low unit costs at 89 c/lb. Chile was weaker as costs rose to 199 c/lb amid lower volumes and rehabilitation charges.
- Premium Iron Ore: Flat production at 60.8 Mt and better realised prices drove EBITDA up 8%. Kumba benefited from improved rail performance and penalty income from Transnet; Minas-Rio absorbed a planned pipeline shutdown and still grew earnings.
On the cost side, Anglo hit its $1.8 billion run-rate savings target by year-end, and it showed up in cash flow: cash conversion of 107% and a $0.6 billion working capital release, helped by inventory management.
De Beers impairment drags to a Group loss
Diamonds remained the problem child. De Beers posted an underlying EBITDA loss of $511 million and Anglo recognised a pre-tax impairment of $2.3 billion ($1.8 billion after tax and non-controlling interests). Tough trading, lower rough prices and “stock rebalancing” – selling lower-demand assortments at lower prices – hurt. Production was sensibly reduced 12% to 21.7 Mct to align with demand, and unit costs fell 8% to $86/ct, but not enough to offset the price pressure.
Bottom line: despite decent operating delivery elsewhere, the Group recorded a statutory loss attributable to shareholders of $3.7 billion, principally because of the De Beers impairment.
Balance sheet, cash and dividends
Deleveraging is moving the right way. Net debt dropped to $8.6 billion (from $10.6 billion), taking net debt to EBITDA down to 1.3x. Proceeds from selling the residual Valterra Platinum stake and the Jellinbah disposal supported the move, alongside lower capex at $3.3 billion.
Dividends followed policy: 40% payout of underlying earnings, equating to $0.23 per share for 2025 ($0.07 interim and proposed $0.16 final). That’s lower year-on-year – a function of lower Group underlying earnings as divested and held-for-sale assets rolled off and diamonds weakened.
Portfolio reset and Teck merger: why it matters
2025 was a pivot year. Anglo is simplifying fast – demerging PGMs (Valterra Platinum), progressing the sale of Steelmaking Coal, moving through approvals to sell Nickel, and pushing a dual-track separation of De Beers. In parallel, the Teck merger – to form Anglo Teck – is advancing through approvals after strong shareholder backing and Canadian sign-off under the Investment Canada Act.
Why this matters: the combined strategy tilts exposure to future-facing commodities, with more than 70% copper exposure for shareholders post-merger. For investors, that should mean cleaner earnings drivers, simpler valuation, and capital allocation focused on copper, premium iron ore and crop nutrients.
Operational trends: the honest read
- Production mix: Copper volumes were down (Chile softness) but Peru offset on costs and throughput. Premium iron ore was resilient. Manganese bounced 30% post-cyclone disruptions in 2024. Diamonds were trimmed to match demand.
- Prices: Copper tailwinds and premium iron ore premia helped. Iron ore benchmarks were lower, but quality premia and lower freight costs supported realised prices.
- Costs and tax: Inflation and FX were modest headwinds. The underlying effective tax rate for continuing operations was high at 51.5% (39.1% excluding De Beers) – worth watching as the earnings mix shifts.
2026 guidance and growth projects to watch
- Copper: 700-760 kt in 2026; weighted unit cost c.172 c/lb (Chile guidance c.230 c/lb; Peru c.100 c/lb). Chile is weighted to H2 as Collahuasi’s access to higher-grade ore improves; Los Bronces restarts its second plant temporarily to add c.25 kt in 2026.
- Premium Iron Ore: 55-59 Mt in 2026 at c.$41/t weighted unit cost (Kumba c.$45/t; Minas-Rio c.$36/t). Kumba output dips in 2026 due to UHDMS tie-in but sales are protected by stock drawdown.
- De Beers: 21-26 Mct production guidance with unit cost c.$80/ct; separation process under way.
- Capex: c.$3.6 billion for continuing operations in 2026, including c.$3.1 billion for the simplified portfolio. Long-term sustaining capex guided at c.$2.0 billion per annum (simplified portfolio, 2026 real).
Growth options look capital-disciplined: debottlenecking at Collahuasi and Quellaveco; UHDMS at Kumba; Minas-Rio recleaner columns; and Woodsmith activity focused on de-risking and market development, with Mitsubishi stepping in to support studies and pilot sales as Anglo targets a future syndication.
ESG and safety: momentum continues, but vigilance needed
On safety, Anglo recorded its lowest-ever injury frequency rates in 2025, but tragically two fatalities – reminders that improvement must continue. Environmentally, Scope 1 and 2 emissions fell to 6.3 Mt CO2e (down 14% year-on-year) and fresh water withdrawals fell materially, with key water security projects progressing in Chile. These trends support licence-to-operate and cost resilience over time.
My take: the good, the bad, and the watchlist
Positives
- Resilient core earnings with standout margins in Copper and Premium Iron Ore.
- Deleveraging, strong cash conversion, and lower capex – sensible financial housekeeping.
- Clear strategic path: Teck merger plus divestments should simplify and re-rate the story around copper-led growth.
Negatives
- Diamonds are a material drag – impairment and operating losses underscore the urgency of separation.
- Copper Chile underperformed on volumes and costs in 2025; execution on Collahuasi improvements is key.
- Dividend lower year-on-year; underlying effective tax rate elevated due to earnings mix.
What to watch next
- Regulatory milestones and timeline clarity for the Teck merger.
- Sale progress and terms for Steelmaking Coal and Nickel; structure and value outcome for De Beers separation.
- Copper delivery in H2 2026 as Collahuasi access improves; realised price premia and cost discipline holding up.
- Net debt trajectory as further divestment proceeds land and capex remains disciplined.
Bottom line: this is a transition year that still delivered cash, cost savings and balance sheet progress. If Anglo executes on the portfolio reset and the Teck merger lands as planned, investors get a more copper-heavy, higher-quality miner with simpler moving parts. The near-term swing factor is diamonds – the quicker and cleaner that exit, the better for the valuation narrative.
